Based on wavelets, a theoretical method has been developed to process multi-gray level documents. In this method, two-dimensional multiresolution analysis, a wavelet decomposition algorithm, and compactly supported orthonormal wavelets are used to transform a document image into sub-images. According to these sub-images, the reference lines of a multi-gray level document can be extracted, and knowledge about the geometric structure of the document can be acquired. Particularly, this approach is more efficient to process form documents with gray level background. Experiments indicate that this new method can be applied to process documents with promising results